MARKET PROSPECTS

Dominion, Volume 15, Issue 134, 2 March 1922, Page 6

MARKET PROSPECTS

OPTIMISTIC SPEECH BY MR. MASSEY CONTINUED IMPROVEMENT IN PRICES PREDICTED “MUST WORK & PRODUCE” BY TELEGRAPH—SPECIAL BEPORTEE. Marton, March 1. The Prime Minister made some interesting references to market prospects and the formation of the meat pool at the Marton show grounds to-day. Ho predicted a continued improvement in prices, and congratulated the farmers of tho Dominion upon the constitution of the Meat Producers’ Board. The official opening of the show had been delayed until the Prime Munster arrived. Mr. Massey was received with vigorous cheers by a large gatnelHe' said that he need net draw the attention of a farming community to the improvement that had taken place in the general outlook during recent weeks. He joined with them in reioicing at that improvement, while he recognised that there was still plent), of room for further improvement, lhe farmers had now a great deal of responsibility apd autarky in their own hands. The Meat Producers’ Board consisted of farmers, and it was for that board now to deal with the situation in the interests.of the whole body of primary producers and of the Dominion Tho farmers could have carried on. despite the huge increase in freights and cost of production, it nrices had remainded at the war level, but they had not been able to carry on undv the new conditions, when the prices fdU. The meat pool scheme had been a necessary move for protection“Your duty as producers and rnv duty as head'of the Government is to see’that everything that is sent cut of this country is the. very best that can bo produced,” said the Prime Minister. “I do not think that many of us will forget the lessons of the last few weeks, since about, the second week in January. Your remember the big conference, the most representative gatherinc: of farmers that I have ever seen, that met in Wellington to discuss the position and think out for themselves whether it was possible to have a hotter system of marketing our products, and to secure, a better return for the producer. The conference desired that the producer should have a fair share returned to him of the price at which his meat was being sold. A very great deal has been done since the meeting of that conference. The Meat Producers’ Board has been elected, end I have been glad to see that Mr. T. A. Duncan has become a member of the board as the representative of Rangitikei. A FIRST-CLASS BOARD. “I believe that we have a first-claes board composed of shrewd, men, who have been through the mill; who have risen, most of them, from the bottom rung of the ladder and have had experience during very many years. They are willing now to give their time, skill, and experience for the benefit of all the producers, and of all the people of this country. I know that they will do good work. One more member of the board has io be elected as the representative of the stock and station companies. Then tho board will elect its chairman and get to work. One of its first important tasks will be to select the very best man who can be found to represent the meat producers of the Dominion in London in connection with the disposal of their produce. “I want you to look back over the changes that have taken place since that conference in Wellington. You have had the freezing charges reduced in almost every part of New Zealand; you have had freights reduced, and I hope they will be still further reduced before very long; you have had the storage charges in London reduced; you have had an assurance from tbs Port of London Authority, which is the most important body in that respect that we have to deal with, that New Zealand ships will be given every possible facility for prompt discharge and that in all probability no further delays will take place. The most important benefit of all has been the improvement in tho price of meat. “You have heard the statement that the formation of the meat pool had nothing to do with these changes fpr the better. A prominent Auckland business man came into my room yesterday and showed me a letter that he had received from his father, who is in business in London. The father wrote: —

There is one thing that is going to benefit New Zealand to an enormous extent in this city and this country, and that is the formation of the meat pool. It is the best thing that has happened. It has stirred up all the people in the trade and they are willing to give a considerably higher price for your produce to-day than a month ago. Mr. Massey added that ho would not claim for the pooling scheme all the credit for the improvement in conditions, but he believed that the pool had a great deal to do with it. 'The reductions in charges and the increases in prices during recent weeks meant an addition of £2,500,000 to the annual income of the producers, and this extra money was going to benefit every section of the community. He did not see any reason why the improvement should not continue. NOT SOCIALISTIC. “We are not out to form a ring.” continued the Prime Minister. "We don’t want to exploit our customers. We don’t want to exploit anyone, and we don’t intend to be exploited ourselves. (Applause.) I believe that the new board is going to do a great work for this country. We have been told that we are Socialists. Almost every paper in England has been commenting on New Zealand’s meat pool, and a good deal of the comment is unfavourable. You know what happened here, and I have no doubt that the same sort of wire-pulling went on over there, but this is not a socialistic scheme, and it is to be controlled by the producers, not by departmental officers. It is a co-operative scheme, and it is not intended to be anything else. THE SLUMP PASSINC. “I am not able to say that the slump is behind us. 1 know better. But 1 tell you that I believe things will be bettor in the future. You have had an improvement in the prices of lamb, mutton, butter, cheese, and wool. I had an opportunity of investigating the wool market for myself when I was in England, and I was satisfied then that we should have an improvement in price. The people at Bradford took me into their confidence and I could sec that their stores were almost empty. There was the big accumulation of wool in the hands of the Imperial Government, but to-day

the wool remaining in the hands of the Imperial Government is just about equal to oiie Australian clip, and it is being reduced steadily. As that wool disappears’ and as exchange rates between the different countries, become stabilised, the price of wool will increase I am not prophesying a great boom in wool, but the price of wool is going to increase just as sure as we stand here to-day. I pledge my reputation on it It will be a very good thing lor this country when wool gets back to something more like its value than the prices of to-day.. .If we all work and produce I am quite certain that the slump will not be long with us. Mr Massey congratulated the dairy farmers on the increase in the prices of their products. He said that the increase in the value of the butter and cheese exported from New Zealand had been larger than the decrease in the value of the wool. New Zealand needed fair prices, for all its produce, in order that it might carry the financial burdens that it had been compelled to assume. It would not have a big surplus when the financial year closed at the end of the month, but he thought there would be a balance on *?.ie right side. The foundations of retrenchment had been laid well by Parliament 'during the recent session, and he believed that the state of the public finances was going to improve. The scheme of retrenchment could take full effect at once but he was sure that the finances of the Dominion wore going to be placed in a thoroughly sound position as a result of the measures that had been taken already. Money was becoming more plentiful. The reduction in the bank rate in Britain meant that in the not far distant future there would bo a fall in the price of money in this country. CHEAPER MONEY. 'The fall in the bank rate was an indication, also, that England was going back to work. . He had learned within the last few days that the output of coal in England had doubled, and thatEngland was not only supplying all its own requirements, but was exporting coal to every country that required it. That was a splendid indication. It was of great importance to Now Zealand, because the growth of British exports meant an increase in the purchasing power of New Zealand’s best customer. .He believed there were definite indications now that the British worker and the British manufacturer were getting back to their old conditions of efficiency, and were assisting England to assert her industrial and financial supremacy. In conclusion, Mr. Massey said, that he wished to express his appreciation of the manner in which the people of New Zealand had gone to work during the last twelve months. The primary producers had done wonderfully well under adverse conditions. The coal miners also had settled down to work, and with their assistance the, industries and domestic consumers had been given ample supplies of coal. 'The contracts under which coal was being brought into New Zealand were now expiring, and he hoped soon to be able to look to the local mines and the local miners for all the coal required by New Zealand industries. He did not doubt that the coal would be forthcoming. The Prime Minister was welcomed to the show by Mr. A. Stuart, the president of the Marton A. and I'. Association, and by Mr. IV. S. Glenn, 11.)?. for the district, who assured him of the warm personal regard for him felt by the people of the district, and of their appreciation of his services to the Dominion and the Empire. The large gathering gave Mr. Massey a very enthusiastic reception, and after the foriTlal proceedings were over he met. many old friends, and showed a lively interest in the exhibits. Ho was entertained at dinner bv the members of the association in the evening. Ho will proceed to Napier to-morrow on his way to Wairoa and Gisborne.